February 29, 2012

Also today, the PA Supreme Court reversed a Commonwealth Court ruling which would have required the General Assembly to return about $800 million to the MCARE Fund used to pay the malpractice insurance of some doctors. The money instead was used to balance the state budget in FY 2009-10. A copy of the decision is available online.

In a 4-3 decision, the PA Supreme Court ordered House Speaker Sam Smith to hold six special elections for vacant House seats on Primary Election day April 24. In their opinion, the Court also waived the usual 60 day waiting period before special elections can be held.The vote again put Chief Justice Ron Castille on the side of the three Democratic members of the Cour, just like the decision to reject the House and Senate redistricting plan developed by the Legislative Reapportionment Commission.

February 24, 2012

DEP Secretary: I'm Bullish About This Budget And In Our Ability To DeliverSecretary of Environmental Protection Michael Krancer told the Senate Appropriations Committee Wednesday DEP has the resources and personnel to properly regulate and protect pubic health and safety and the environment in all areas of the department, including Marcellus Shale. "I'm bullish about this budget and in our ability to deliver."

February 22, 2012

Secretary of Environmental Protection Michael Krancer told the Senate Appropriations Committee Wednesday DEP has the resources and personnel to properly regulate and protect pubic health and safety and the environment in all areas of the department, including Marcellus Shale. "I'm bullish about this budget and in our ability to deliver."

February 17, 2012

Department of Conservation and Natural Resources Secretary Richard Allan appeared before the Senate Appropriations Committee Thursday for a little over an hour answering questions about DCNR's proposed FY 2012-13 budget.

As usual, the Committee dispensed with Secretary Allan's prepared remarks. Here are some of the highlights from the questions asked--

Drilling Leases: There are no plans to lease additional State Forest Land, but if they would, they would follow the recommendations of the Governor's Marcellus Shale Commission to only do leases where they leave little or no surface impact.

Of the 812 well permits have been approved by DCNR on State Forest land, 778 Marcellus Shale wells have been permitted by DEP, 442 wells have been drilled and there are 152 producing wells.

DCNR anticipates receiving $65 million in FY 2012-13 in royalties and rents from drilling, Secretary Allan said. He said there may be some decrease in drilling revenues in the next year or so with lower natural gas prices.

In response to a question, Secretary Allan said the agency professionals are constantly monitoring drilling companies to make sure they comply with their leases and agency best management practices. He said so far, the drillers have been good stewards and have minimized their impacts on State Forest lands.

Drilling In State Parks: DCNR has a policy that there will be no drilling in State Parks where the state owns the mineral rights, Secretary Allan said. Unfortunately, he said, the state owns mineral rights on only 20 percent of the land in State Parks and on 80 percent in State Forests. He said DCNR will look to enforce their guidelines and best management practices on drillers on State Park land and other areas where they don't own mineral rights to make sure any surface impacts are minimized.

State Parks: In spite of budget constraints, Secretary Allan said, DCNR anticipates being able to keep all State Parks open and available for residents, but acknowledged there may be some changes in some services offered, such as the hours in some parks.

Secretary Allan said an updated economic study shows for every dollar invested, State Parks bring in $12 for a total of $1.1 billion of economic activity annually and they support over 13,000 jobs in and around the parks.

Keystone Fund: The proposed transfer of all DCNR revenues from the Keystone, Parks and Conservation Fund to the General Fund, Secretary Allan said, will require the agency to look to other sources of monies to support their operations, like the Oil and Gas Fund, the Environmental Stewardship (Growing Greener) Fund and the new drilling fee revenue.

He said he advised the Governor's Office the reduction in funding will require the agency to put off some maintenance projects and reduce the funding going for grants.

Secretary Allan said he believes in the future there will be more revenue in the Oil and Gas Fund and from the new drilling fee to replace at least some of the Keystone Fund monies. Click Here for more....

The historic measure is the first comprehensive re-write of the state’s Oil and Gas Act since 1984. It contains much of what Corbett outlined in his Marcellus Shale proposal last October. His plan followed the work of the Governor’s Marcellus Shale Advisory Commission. House Bill 1950 contains 24 of the legislative recommendations offered by the advisory commission.

“This growing industry will provide new career opportunities that will give our children a reason to stay here in Pennsylvania,” Corbett said. “Thanks to this legislation, this natural resource will safely and fairly fuel our generating plants and heat our homes while creating jobs and powering our state’s economic engine for generations to come.”

The new law enhances environmental standards by:

-- Increasing well-setback distance from 100 feet to 300 feet for streams, rivers, ponds and other water bodies, and from 200 feet to 500 feet from buildings and private water wells and to 1,000 feet for public drinking water systems;

-- Expanding an unconventional operator’s “presumed liability” for impairing water quality from 1,000 feet to 2,500 feet from a gas well, and extends the duration from 6 months to 12 months;

This law also authorizes counties within the shale regions to adopt an impact fee, which will be used by local communities experiencing the actual impacts of unconventional shale gas development.

To recognize the tight economics associated with low natural gas prices, the fee amount can fluctuate annually and is based on the average price of natural gas for the preceding year.

If all eligible counties adopt the fee, estimates for revenue are approximately $180 million in 2012, climbing to $211 million in 2013 and $264 million in 2014.

State agencies with a role in mitigating shale gas impacts, such as the Department of Environmental Protection, the Public Utility Commission, Pennsylvania Emergency Management Agency, State Fire Commissioner and the Fish and Boat Commission, will receive fixed dollar amounts off the top of the revenues collected from the fee.

After that, 60 percent is directly distributed to impacted counties. A significant percentage of the remaining 40 percent will also be distributed to those counties through either population- or road-mileage-based formulas, or through the awarding of competitive grants.

The new law also provides long-term regulatory predictability for job-creators and capital investors, and helps businesses succeed by providing increased uniformity and fairness of local regulations while preserving local government’s traditional zoning authority. Upon petition, the Public Utility Commission is authorized to review ordinances to make sure they comply with state law.

Finally, the law creates a Natural Gas Energy Development Program, which will provide incentives to convert fleets with vehicles weighing at least 14,000 pounds to compressed natural gas, liquefied natural gas, or bi-fuel vehicles. At least 50 percent of the funds must be used for grants to local transportation organizations, including mass transit agencies.

The law’s provisions authorizing counties to adopt ordinances imposing an impact fee go into effect immediately. The majority of the law takes effect in 60 days.

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